In our last technical comment on the EURJPY pair, we have studied the movements of the pair from classical point of view, when we said the right shoulder of an inverse head and shoulders pattern was under-construction.
The Pair didn’t reach the full technical target of our caught harmonic formation, but retraced from 38.2% Fibonacci of BC leg instead of 50%.
However, we said “the harmonic 5-0 formation is bullish” and thus, the pair has responded to the classical daily studies, moving sharply upwards.
Currently, we can see stable move above the neckline of the classical pattern, which should be protected by the neckline areas.
Longs are preferable as far as 136.50 support regions hold, while soft targets of the structure resides at 145.00 boundaries.